At the end of the hearing, the administrator adopts a recommended decision which, among other things, decides on each of the conclusions proposed by the interested parties, proposing either a marketing agreement, a contract, or rejects the application. Marketing contracts and agreements are legal instruments of the USDA Secretary that aim to stabilize market conditions for certain agricultural raw materials by regulating the management of these raw materials in intergovernmental or foreign trade. After approval by the USDA Secretary and producers, marketing contracts are mandatory for the entire sector in a given geographic area. Sna agreements for the marketing of marketing orders are divided into three specific categories: (1): fruits, vegetables and specialty crops, (2). Milk and dairy products and (3). Under current rules, marketing orders for each product or their products, with the exception of milk, must be designed to achieve at least one of the following objectives: the administrator is required to review the proposal to determine whether there is “reason to believe” that the issuance of the order or agreement “generally provokes the declared policy” of AMAA. If the administrator finds that the proposed order or agreement has the effect of “the declared directive” of AMAA, he must provide for the possibility of a hearing on the proposed order. A public hearing is published at least 15 days before the hearing. Marketing contracts and agreements are managed by the Agricultural Marketing Service (AMS), an agency within the USDA, and are managed by the Agricultural Marketing Agreement Act of 1937 (“AMAA”) in its amended version, 7.C 671-74. The provisions relating to the establishment and regulation of markets and marketing agreements are contained in 7 C.F.R.
900-999 (fruits, vegetables, nuts and special crops), 7 C.F.R. 1000-1199 (milk) and 7 C.F.R. no. 1200-1599 (various materials). Marketing contracts are different from marketing agreements: marketing contracts are mandatory for all persons and companies classified as “handler” in a geographical area covered by the order, and marketing agreements are binding only on voluntary signatories to the agreement. Unlike marketing contracts, marketing agreements are voluntary and only handlers who have signed the agreement are bound by their rules. It is not necessary to grant a marketing agreement for a marketing contract to take effect. The final step in establishing a marketing order or agreement is the approval of the referendum. As a general rule, two-thirds of the producers of the goods concerned, either in number or volume, must accept the proposed order or agreement. After approval, the contract or agreement is required for all handlers in the marketing area specified in the order or agreement. The process of amending an order or agreement takes place in parallel with the process of establishing an order or agreement.
The Agricultural Marketing Agreement Act of 1937 provides jurisdiction for federal marketing contracts and also confirmed the marketing agreements of the Agricultural Adjustment Act of 1933. Economic conditions during the Great Depression of the 1930s exacerbated a problem of overburdened markets.